Banks Drag Sensex Down 1.7%, Govt Sells 10% Stake in Coal India

Mukesh Buch
30 Jan, 2015
New York City

Market indexes in Mumbai drop 1.7% led by a sharp plunge in bank stocks. Government of India lowered its stake in the largest coal miner to 80%. Bank of Baroda lifted its bad loan reserves and net plunged 68%. HCL Tech net rose 2%. ICICI climbed 14%. IDFC net slipped 16%. NTPC net gained 7%.

[R]6:00 PM Mumbai – Market indexes in Mumbai drop 1.7% led by a sharp plunge in bank stocks. Government of India lowered its stake in the largest coal miner to 80%. Bank of Baroda lifted its bad loan reserves and net plunged 68%. HCL Tech net rose 2%. ICICI climbed 14%. IDFC net slipped 16%. NTPC net gained 7%.[/R]

Stocks in Mumbai sold off and banks led the decliners and the government priced its stake in Coal India.

Central government of India sold 10% stake in the largest coal miner and lowered its stake to 80% and raised ₹22,000 crore. The offering was oversubscribed by institutional investors but retail investors avoided the offering.

Of the allotted shares, institutional investors’ bids were 1.2 times oversubscribed and retail tranche of the offering received only 44% interest.

However, banks sold off after Bank of Baroda reported sharply higher reserves for bad loans. The economic slowdown in the last two years has led to a sharp jump in non-performing loans at public sector banks.

Bank of Baroda plunged 11%, Oriental Bank, Bank of India and State Bank of India declined between 5% and 6%.

Indian rupee closed at 61.86 against one dollar.

The Sensex Index declined 498.82 or 1.7% to close at 29,182.95. The CNX Nifty slipped 143.45 or 1.6% to 8,808.90.

For the week, Sensex jumped 0.7% and for the month surged 6.6%.

For the week, CNX Nifty climbed 0.7% and for the month soared 6.9%.

Gainers & Losers

Bank of Baroda plunged 11.1% to ₹193.35 after the second largest public sector bank reported net in the third-quarter tumbled 68.12% to ₹333.98 crore.

Total revenues climbed 11.16% to ₹11,808.34 crore.

HCL Technologies Limited soared 9% to ₹1,794.10 after the biggest software service provider reported net in the third-quarter increased 2.3% to ₹1,915 crore.

Net revenues advanced 6.3% to ₹9,283 crore.

ICICI Bank Limited tumbled 4.9% to ₹361.15 after the largest private sector lender said net in the third-quarter jumped 14.09% to ₹2,889.04 crore. Net revenues increased 8.91% to ₹15,526.88 crore.

The net non-performing assets in the December quarter jumped 1.27% to ₹4,831 crore from 1.09% to ₹3,997 crore in previous quarter and ₹3,121 crore in same period last year.

IDFC Limited rose 0.9% to ₹172.20 after the financial service provider said net in the third-quarter dropped 15.79% to ₹421.60 crore.

Total revenues surged 15.98% to ₹2,462.08 crore.

NTPC Limited advanced 1.4% to ₹143.80 after the power generation company reported net in the third-quarter gained 7.43% to ₹3,054 crore.

Revenues rose 1.27% to ₹19,339.37 crore.

Siemens Ltd dropped 1.6% to ₹1,039.85 after the automation systems provider said net in the first-quarter surged 873.93% to ₹634.03 crore.

Total revenues fell 7.71% to ₹2,216.28 crore.